The Controller of Budget’s County Governments Budget Implementation Review Report has revealed that Nairobi City County has made significant strides in tackling its long-standing debt burden, achieving a sharp reduction in pending bills.
As of June 30, 2024, the county reported pending bills totaling KSh121.78 billion. Within the 2024/25 financial year, the County Executive cleared KSh7.56 billion in debts — KSh5.84 billion for recurrent programmes and KSh1.72 billion for development programmes. The County Assembly also settled KSh283.17 million.
Following a debt Reconciliation and Negotiation with Creditors as well as arbitration through court process, Nairobi’s outstanding pending bills dropped to KSh86.77 billion by the end of June 2025, marking a reduction of nearly KSh35 billion — one of the steepest declines in the city’s debt stock in recent years.
The County Executive exceeded its own pledge, having committed to pay KSh800 million but ultimately allocating more resources towards settling of pending bills and clearing more than nine times that amount.
The report credits the administration’s focus on financial discipline, revenue mobilization, and improved budget absorption for the progress. It also highlights that timely settlement of bills not only unlocks stalled projects but also injects liquidity into the local economy.
Separately, Nairobi Governor Sakaja Johnson, speaking in a radio interview on Thursday, explained that the review uncovered irregular claims that must be verified before they are added in the county’s debt register. The legal department continues to reassess all County legal bills, reducing the overall bills. Additionally, the County has employed legal officers to minimize outsourcing legal services .
“We have already reduced them by close to KSh39 billion and will continue with the review process,” he said.
Sakaja emphasized that Nairobi’s financial challenges are historic and cannot be ignored. The historical debts have continued to attract huge interests and penalties over time
“As we make Nairobi work, we must also resolve past issues, because Nairobi didn’t start in 2022,” he noted.
The reduction of nearly KSh35 billion in pending bills has eased a financial burden that suppliers and contractors have endured for years, signaling progress in Nairobi’s journey toward fiscal stability.
Page 349 of the county government budget implementation review reports
